Yep, it's definitely a slippery slope. Washington Local looks to be doing more of the later with their reorganization of schools...everything I've heard points to the combined elementary school (taking over for Wernert and Jackman), and the combined Junior High (taking 6th from the elementary schools while combining 7th and 8th and mushing them all together in one building by the old Erme Field/Library area) all having multiple principals, not just vice principals. So really, there is no cutback whatsoever on administrative bloat, though they will save considerably on facility maintenance (which I feel is more to dap's point).Not in my experience. Larger schools tend to spend more money per student. Part of that may be that larger schools are in urban areas, but more importantly I find that larger schools have more bloated bureaucracies.
Two smaller schools might have one principal each. If they merge, there tends to be one overall principal and then two-vice principals. Instead of one athletic director apiece, their is now one overall athletic director and two assistant AD's. Etc.